Question: a. For Good X, demand is elastic compared to supply. Who pays the bigger portion of an excise tax on good X? Demonstrate using a

a. For Good X, demand is elastic compared to supply. Who pays the bigger portion of an excise tax on good X? Demonstrate using a graph. (7 points) b. For Good Z, demand is inelastic compared to supply. Who pays the bigger portion of an excise tax on good Z? Demonstrate using a graph. (7 points) c. Does the government usually put excise taxes on goods with inelastic demand or elastic demand? Briefly, why? (6 points)

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